Trekor Metals Ltd. press release
Taseko Announces Second Quarter Financial and Operational Results
TSX - Toronto Stock Exchange · Copper · Molybdenum · Silver · Gold · Niobium · Canada
VANCOUVER, British Columbia, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Taseko Mines Limited (TSX: TKO; NYSE American: TGB; LSE: TKO) ("Taseko" or the "Company") reports second quarter 2025 Adjusted EBITDA* of $17 million, net income of $22 million ($0.07 per share) and an Adjusted net loss* of $13 million ($0.04 loss per share). Revenues for the second quarter were $116 million from the sale of 19 million pounds of copper and 178 thousand pounds of molybdenum.
Second quarter copper production at Gibraltar was in line with plan and mining operations made significant headway opening up the Connector pit. Tons mined was 31% higher than the first quarter, and the improved mining rates have set the mine up to deliver the expected higher grades in the second half of the year. The mine produced 20 million pounds of copper and 180 thousand pounds of molybdenum in the second quarter at Total operating costs (C1)* of US$3.14 per pound of copper produced. Mill throughput averaged 84,200 tons per day at average copper grades of 0.20% and copper recoveries were 63%. Recoveries continued to be impacted by both low grades and also high oxide and secondary mineralization. Second quarter copper production also includes the first copper cathodes from Gibraltar’s newly refurbished SX/EW plant which restarted in late May after being idle since 2015. After a quick ramp up in June and July, the plant is now operating at a steady state.
Construction activities at Florence Copper continue to advance on schedule and the project remains on track to achieve first copper cathode production before the end of 2025. At the end of June, overall project completion was over 90% and US$239 million had been incurred on construction in the last 18 months. Construction spending was lower than the prior quarter and, with approximately 90% of total expected construction costs now incurred, spending will decline again in the third quarter as construction activities wind down.
Stuart McDonald, President & CEO of Taseko, commented, “I am very pleased with progress at Florence Copper, where our project team has done an excellent job maintaining the project schedule and budget, without compromising the safety of our contractors or employees at site. Construction activities will soon be shifting to commissioning of the SX/EW plant systems and beginning wellfield operations. With less than six months until anticipated first production, this is an exciting time for our Company. We still have a lot of work ahead to complete construction and ramp up copper production, but the more than ten years of effort to get us here is about to payoff.
At Gibraltar, mining operations have made good progress advancing deeper into the Connector Pit and we’re looking forward to a much stronger second half. The expected higher grades and improved recoveries will lead to increased copper production and stronger cash flows.
Despite the recent volatility in Comex copper prices, we remain in a healthy copper price environment and it’s great timing to be growing our copper production base with a new US-based operation. With lowest quartile operating costs, Florence Copper will begin to generate strong cashflows next year as it ramps up to design capacity.”
*Non-GAAP performance measure. See end of news release.
Mr. McDonald continued, “Another important goal for us is to unlock value from our longer-term growth portfolio, and in recent months we’ve achieved some significant milestones with those projects. We published an updated technical study for Yellowhead, which showed a significant improvement in project economics. At a copper price of US$4.25 per pound, Yellowhead has an after-tax NPV (8%) of $2 billion and a 21% internal rate of return. With average annual copper production of 178 million pounds over 25 years, Yellowhead represents a high quality, longer-term growth option for Taseko. Also, in early July the Environmental Assessment process was formally initiated with the filing and acceptance of the Initial Project Description. We will look to unlock further value from Yellowhead as it advances through the permitting process, and as we progress other technical and financing aspects of the project.”
“Another significant development was the recent agreement reached with Tŝilhqot'in Nation and Province of BC on our New Prosperity Project. The payment of $75 million was received from the Province of BC during the second quarter and Taseko retains a 77.5% interest in the project. We believe this agreement could potentially open a pathway for the mine to be developed in the future, but only with the Tŝilhqot’in Nation’s consent.
With Florence Copper just months away from first production and with Yellowhead now moving forward into permitting, we are making significant strides advancing our long-term strategy to become a North American multi-asset copper miner,” concluded Mr. McDonald.
Second Quarter Review
Earnings from mining operations before depletion, amortization and non-recurring items* was $20.7 million, Adjusted EBITDA* was $17.4 million and cash flows from operations was $26.0 million; Net income was $21.9 million ($0.07 per share) and Adjusted net loss* was $13.0 million ($0.04 loss per share) after removal of unrealized foreign exchange gains on the Company’s US dollar-denominated debt; Gibraltar produced 19.8 million pounds of copper at a total operating (C1) cost* of US$3.14 per pound of copper produced. Copper head grade was 0.20% and recovery was 63% for the quarter reflecting the continued processing of lower grade stockpiled material which also had higher oxidation; Gibraltar sold 19.0 million pounds of copper at an average realized copper price of US$4.32 per pound and at an average Canadian dollar exchange rate of 1.38, contributing to revenues of $116.1 million for Taseko; At June 30, 2025, construction of the Florence Copper commercial production facility was over 90% complete and remains on schedule for first copper production before the end of the year. All 90 injection and recovery wells planned for the construction phase have now been drilled and completed. Construction of the solvent extraction and electrowinning areas continue to advance, with the installation of major components well underway;
*Non-GAAP performance measure. See end of news release.
In June 2025, Taseko, Tŝilhqot’in Nation and the Province of BC reached an agreement concerning the New Prosperity project. Taseko received a payment of $75 million from the Province of BC on closing of the transaction in the second quarter; In July 2025, the Company filed an updated technical report on the Yellowhead project highlighting an after-tax net present value of $2.0 billion for the project (8% after-tax discount rate), after-tax internal rate of return of 21%, and payback period of 3.3 years. The Company also announced that it had submitted an Initial Project Description for the Yellowhead project and formally commenced the Environmental Assessment process with regulators; The Company has copper collar contracts in place to secure a minimum copper price of US$4.00 per pound for 54 million pounds of copper for the remainder of 2025; and, At June 30, 2025, the Company had a cash balance of $122.0 million and available liquidity of $197.0 million including the undrawn portion of its corporate revolving credit facility.
*Non-GAAP performance measure. See end of news release.
Highlights
| Operating data | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | | | (Gibraltar – 100% basis) | | 2025 | | 2024 | | Change | | 2025 | | 2024 | | Change | | | | Tons mined (millions) | | 30.4 | | 18.4 | | 12.0 | | | 53.6 | | 41.2 | | 12.4 | | | Tons milled (millions) | | 7.7 | | 5.7 | | 2.0 | | | 15.6 | | 13.4 | | 2.2 | | | Production (million pounds Cu) | | 19.8 | | 20.2 | | (0.4 | ) | | 39.8 | | 49.9 | | (10.1 | ) | | Sales (million pounds Cu) | | 19.0 | | 22.6 | | (3.6 | ) | | 40.8 | | 54.3 | | (13.5 | ) |
| Financial Data (Cdn$ in thousands, except for per share amounts) | | Three months ended June 30, | | Six months ended June 30, | | | | | | | | | | | | | | | | 2025 | | 2024 | | Change | | 2025 | | 2024 1 | | Change | | | | | | | | Revenues | | 116,082 | | | 137,730 | | | (21,648 | ) | | 255,231 | | | 284,677 | | (29,446 | ) | | Cash flows from operations | | 25,954 | | | 34,711 | | | (8,757 | ) | | 81,846 | | | 94,285 | | (12,439 | ) | | Net income (loss) | | 21,868 | | | (10,953 | ) | | 32,821 | | | (6,692 | ) | | 7,943 | | (14,635 | ) | | Per share – basic (“EPS”) | | 0.07 | | | (0.04 | ) | | 0.11 | | | (0.02 | ) | | 0.03 | | (0.05 | ) | | Earnings from mining operations before depletion, amortization and non-recurring items* | | 20,700 | | | 76,928 | | | (56,228 | ) | | 59,491 | | | 129,725 | | (70,234 | ) | | Adjusted EBITDA* | | 17,432 | | | 70,777 | | | (53,345 | ) | | 51,682 | | | 120,700 | | (69,018 | ) | | Adjusted net (loss) income* | | (13,025 | ) | | 30,503 | | | (43,528 | ) | | (19,968 | ) | | 38,231 | | (58,199 | ) | | Per share – basic (“Adjusted EPS”)* | | (0.04 | ) | | 0.10 | | | (0.14 | ) | | (0.06 | ) | | 0.13 | | (0.19 | ) | | | | | | | | | | | | | | | | | | | | | 1 On March 25, 2024, the Company completed its acquisition of the remaining 50% interest in Cariboo Copper Corp. (“Cariboo”) from Dowa Metals & Mining Co., Ltd. (“Dowa”) and Furukawa Co., Ltd. (“Furukawa”) and increased its effective interest in Gibraltar from 87.5% to 100%. As a result, the financial results reported in this MD&A reflect the Company’s 87.5% effective interest from March 15, 2023 to March 25, 2024 and 100% effective interest thereafter. For more information on the Company’s acquisition of Cariboo, refer to the Financial Statements—Note 12a. | | | | | | | | | | | | | | | | | |
*Non-GAAP performance measure. See end of news release.
Review of Operations
Gibraltar
| Operating data (100% basis) | | Q2 2025 | | Q1 2025 | | Q4 2024 | | Q3 2024 | | Q2 2024 | | | | | | | | | | | | Tons mined (millions) | | | 30.4 | | | | 23.2 | | | | 24.0 | | | | 23.2 | | | | 18.4 | | | Tons milled (millions) | | | 7.7 | | | | 7.9 | | | | 8.3 | | | | 7.6 | | | | 5.7 | | | Strip ratio | | | 2.3 | | | | 4.6 | | | | 1.9 | | | | 1.2 | | | | 1.6 | | | Site operating cost per ton milled* | | $ | 11.23 | | | $ | 8.73 | | | $ | 12.18 | | | $ | 14.23 | | | $ | 13.93 | | | Copper concentrate | | | | | | | | | | | | | | | | | | | | | | Head grade (%) | | | 0.20 | | | | 0.19 | | | | 0.22 | | | | 0.23 | | | | 0.23 | | | Copper recovery (%) | | | 63.2 | | | | 67.5 | | | | 78.2 | | | | 78.9 | | | | 77.7 | | | Production (million pounds Cu) | | | 19.4 | | | | 20.0 | | | | 28.6 | | | | 27.1 | | | | 20.2 | | | Sales (million pounds Cu) | | | 19.0 | | | | 21.8 | | | | 27.4 | | | | 26.3 | | | | 22.6 | | | Inventory (million pounds Cu) | | | 2.7 | | | | 2.3 | | | | 4.1 | | | | 2.9 | | | | 2.3 | | | Copper cathode | | | | | | | | | | | | | | | | | | | | | | Production (thousand pounds Cu) | | | 395 | | | | – | | | | – | | | | – | | | | – | | | Sales (thousand pounds Cu) | | | – | | | | – | | | | – | | | | – | | | | – | | | Molybdenum concentrate | | | | | | | | | | | | | | | | | | | | | | Production (thousand pounds Mo) | | | 180 | | | | 336 | | | | 578 | | | | 421 | | | | 185 | | | Sales (thousand pounds Mo) | | | 178 | | | | 364 | | | | 607 | | | | 348 | | | | 221 | | | Per unit data (US$ per Cu pound produced) 1 | | | | | | | | | | | | | | | | | | | | | | Site operating cost* | | $ | 3.15 | | | $ | 2.41 | | | $ | 2.52 | | | $ | 2.91 | | | $ | 2.88 | | | By-product credit* | | | (0.19 | ) | | | (0.33 | ) | | | (0.42 | ) | | | (0.25 | ) | | | (0.26 | ) | | Site operating cost, net of by-product credit* | | | 2.96 | | | | 2.08 | | | | 2.10 | | | | 2.66 | | | | 2.62 | | | Off-property cost* | | | 0.18 | | | | 0.18 | | | | 0.32 | | | | 0.26 | | | | 0.37 | | | Total operating (C1) cost* | | $ | 3.14 | | | $ | 2.26 | | | $ | 2.42 | | | $ | 2.92 | | | $ | 2.99 | | | 1 Copper pounds produced includes both copper in concentrate and copper cathode. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Operations Analysis
Second Quarter Review
Mining operations continued to advance through the upper sections of the Connector pit, opening up the deeper, higher quality ore zones for the next phase of mining. A total of 30.4 million tons were mined in the second quarter, a 30% increase over the prior quarter due to increased productivity of the mining fleet. Approximately 65% of the ore mined in the quarter was oxide ore, which was added to the heap leach pads and contributed to a lower strip ratio.
*Non-GAAP performance measure. See end of news release.
Operations Analysis - Continued
Lower-grade stockpiled ore continued to be the primary source of mill feed in the quarter, resulting in copper production levels similar to the first quarter. Gibraltar produced 19.4 million pounds of copper in concentrate in the second quarter. Copper head grade was 0.20% and recovery was 63%, impacted by oxidation and supergene material in the stockpiled ore which mainly originated from the upper benches of the Connector pit. Mill throughput was 7.7 million tons in the quarter and remained consistently at nameplate capacity throughout the quarter.
In the second quarter, Gibraltar completed the refurbishment and successfully restarted its solvent extraction and electrowinning (“SX/EW”) plant which had been idle since 2015 and produced 395 thousand pounds of copper cathode.
Capitalized stripping costs totaling $30.8 million remained higher in the second quarter attributable to a higher than normal strip ratio for sulphide ore tons in the Connector pit. Total site costs* including capitalized stripping was $116.8 million in the quarter, higher than the prior quarter primarily due to higher mining rates. Total site costs were also higher than the prior year quarter due to mill downtime in 2024 related to a labour strike and crusher relocation project.
Molybdenum production was 180 thousand pounds in the second quarter, comparable to 185 thousand pounds in the comparative prior year quarter. At an average molybdenum price of US$20.71 per pound for the quarter, molybdenum contributed a by-product credit of US$0.19 per pound of copper produced.
Off-property costs of US$0.18 per pound of copper produced were consistent with the prior quarter and reflect Gibraltar’s 2025 offtake agreements with average treatment and refining charges (“TCRC”) of $nil for the year.
Total operating (C1) costs* were US$3.14 per pound of copper produced in the second quarter compared to US$2.99 per pound of copper produced in the comparative prior year quarter. The increase in total operating (C1) costs was attributable to low site operating costs in the prior year from mill downtime, as well as lower copper production and lower molybdenum by-product credits in the current quarter, partially offset by higher capitalized stripping costs and lower off-property costs as outlined in the bridge graph below:
*Non-GAAP performance measure. See end of news release.
Operations Analysis - Continued
https://www.globenewswire.com/NewsRoom/AttachmentNg/df87bda2-56b8-4686-baef-a7d4ff25f5e6
Gibraltar Outlook
Mining activity will continue to advance in the Connector pit, which will be the primary source of mill feed for the remainder of 2025 and the years ahead. Significant increases in head grades and recoveries, and higher mill throughput from processing the softer Connector pit ore, are expected in the second half of 2025 and continuing into 2026. Copper production for the year is expected to be 110 to 120 million pounds, including cathode production.
Molybdenum production is also forecast to increase in the second half of 2025 as molybdenum grades are expected to be notably higher in Connector pit ore.
The Company has offtake agreements covering Gibraltar concentrate production in 2025 and 2026, which contain significantly lower and in certain cases negative (premium) TCRC rates reflecting the tight copper smelting market. Offtake agreements are in place for substantially all of Gibraltar’s copper concentrate production in 2025 and 2026, and, based on the contract terms, the Company expects average TCRCs to be to around $nil in 2025 and 2026.
The Company has a prudent hedging program in place to protect a minimum copper price and Gibraltar cash flow during the Florence Copper construction period. Currently, the Company has copper collar contracts in place that secure a minimum copper price of US$4.00 per pound for 54 million pounds of copper production for the remainder of 2025 (refer to “Financial Condition Review—Hedging Strategy” for details).
*Non-GAAP performance measure. See end of news release.
Florence Copper
The Company has all the key permits in place for the commercial production facility at Florence and construction continues to advance on schedule. Over 900,000 project hours have been worked with no reportable injuries or environmental incidents. The Company has a fixed-price contract with the general contractor for construction of the SX/EW plant and associated surface infrastructure and activities are beginning to wind down from peak spend in the first quarter.
All injection and recovery wells planned to be drilled during the construction phase were completed as of June 30, 2025. Remaining construction activities are advancing on plan and project areas will soon start transitioning to commissioning.
Operational readiness remains a key focus for site management. Site activities are focused on hiring additional personnel and developing detailed operating plans for the ramp up of production, which is expected to begin before the end of this year.
| Florence Copper capital spend (US$ in thousands) | | Three months ended June 30, 2025 | | Six months ended June 30, 2025 | | Commercial facility construction costs | | 32,956 | | 84,320 | | Site and PTF operations | | 8,276 | | 14,345 | | Total Florence Copper capital spend | | 41,232 | | 98,665 | | | | | | |
Florence Copper commercial facility construction costs were US$33.0 million in the second quarter and US$239.3 million has been incurred on the Florence Copper commercial facility construction as of June 30, 2025.
The Company has a technical report titled “NI 43-101 Technical Report Florence Copper Project, Pinal County, Arizona” dated March 30, 2023 (the “Florence 2023 Technical Report”) on SEDAR+. The Florence 2023 Technical Report was prepared in accordance with National Instrument 43‑101 (“NI 43-101”) and incorporated the results of test work from the production test facility (“PTF”) as well as updated capital and operating costs (Q3 2022 basis) for the commercial production facility.
Project highlights based on the Florence 2023 Technical Report are detailed below:
Net present value of US$930 million (at US$3.75 copper price, 8% after-tax discount rate); After-tax internal rate of return of 47%; Payback period of 2.6 years; Operating costs (C1) of US$1.11 per pound of copper produced; Annual production capacity of 85 million pounds of LME grade A copper cathode; Mine life of 22 years; Total life of mine production of 1.5 billion pounds of copper; and Initial capital cost of US$232 million (Q3 2022 basis).
Florence Copper - Continued
Based on the Florence 2023 Technical Report, the estimated construction costs for the Florence Copper commercial production facility were US$232 million and management continues to expect that total construction costs will be within 10% to 15% of this estimate.
Long-term Growth Strategy
Taseko’s strategy has been to grow the company by acquiring and developing a pipeline of projects focused on copper in North America. We continue to believe this will generate long-term returns for shareholders. Our other development projects are located in BC, Canada.
Yellowhead Copper Project
The Yellowhead copper project (“Yellowhead”) is expected to produce 4.4 billion pounds of copper over a 25-year mine life at an average C1 cost, net of by-product credit, of US$1.90 per pound of copper produced. During the first 5 years of operation, Yellowhead is expected to produce an average of 206 million pounds of copper per year at an average C1 cost, net of by-product credit, of US$1.62 per pound of copper produced. Yellowhead also contains valuable precious metal by-products with 282,000 ounces of gold production and 19.4 million ounces of silver production over the life of mine.